Russian Company Sues Bulgaria Over Nuclear Plant Project

Russia’s Atomstroiekhsport has filed a lawsuit against Bulgaria's National Electricity Company to recover funds it say that it is owed for its work in constructing the Belene nuclear power plant in Bulgaria
 
An Atomstroiekhsport spokesman said, "The measure is procedurally necessary because we are talking here about the work already done, on which the two parties signed completion certificates. In view of its difficult financial position, the Bulgarian customer was granted deferment of payment, and the relevant repayment schedule was agreed. Since the customer (NEC) was not honoring the repayment schedule, the Russian company has had to take legal action, because otherwise Russian fiscal services may have filed claims against it for failing to take measures to recover export earnings, and, as a consequence, failing to pay tax on them into the Russian budget. Further legal actions by the Russian company in view of the Bulgarian side's failure to meet its obligations set out in the signed bilateral documents cannot be ruled out."
 
The legal action has been filed at the International Court of Arbitration of the International Chamber of Commerce to recover $83.2 million in payment for the work already completed on the nuclear station project, RIA-Novosti news agency reported.

By. Joao Peixe, Deputy Editor OilPrice.com